Fitch Ratings has affirmed an A rating to long-term issues of the Hong Kong and Macau subsidiaries of the Industrial and Commercial Bank of China (ICBC), and the outlook for both is stable, the agency announced.
Fitch Ratings sees ICBC Asia and ICBC Macau as part of the bank’s core business, indicating a strong likelihood of major ICBC institutional support in case of need.
The A rating is sixth on a list that begins with AAA and ends with D, the rating for debt issued by entities that have already defaulted.
The press release stated that Fitch Ratings believes that ICBC will support future growth of the two subsidiaries, either through liquidity or capital, as in recent years when ICBC Asia received capital injections of 5.6 billion Hong Kong dollars (2012) and 6.1 billion Hong Kong dollars (2011).
The agency also anticipates that ICBC will fully underwrite debt issued by ICBC Macau when ongoing emissions reach maturity. (macauhub)